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The 'Golden Rule' Level of Capital Per Worker in the Solow

Question 55

Multiple Choice

The 'golden rule' level of capital per worker in the Solow model implies:


A) governments should consistently follow the same monetary policy rule regardless of the economy's stage in the business cycle.
B) consumption will be maximised when capital per worker is at its maximum.
C) there is an optimal rate of saving that will maximise investment.
D) there is an optimal rate of saving that will maximise consumption.
E) there is an optimal rate of saving that will maximise output.

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